Kerry County Council will no longer attempt to run a caravan park near the "Blue Flag" beach at Rossbeigh, the local authority said in a report circulated to councillors.
An Bord Pleanála recently refused the council application for the development of a new park .
The council's original caravan park, which did not have proper facilities and operated for decades, was closed down two seasons ago after a threat of legal action by the National Parks and Wildlife Service and strenuous protests by An Taisce which operates the "Blue Flag" scheme.
There was a risk to the sensitive sand dunes as well as water quality in this conservation area, according to several observations.
The council has now said the arguments against the site - "ecological, visual and environmental" would hold true of other sites on the Rossbeigh sand spit because of its SAC (Special Area of Conservation) designation and it would not be reapplying.
Councillors have criticised the council's decision and that of An Bord Pleanála.
Former mayor of Kerry Ted Fitzgerald (Fianna Fáil) said it was "a shame to have been deprived of a facility that was there for generations."
Local councillor Michael Cahill (FF), who runs a pub down at the beach, said since the site was shut down there had been considerable damage to the dunes by boy racers.
"It's like Mondello Park there now - all torn up."
All the people who were so greatly concerned about the caravan park, such as the National Parks and Wildlife Service were doing nothing to stop this damaging activity, claimed Cllr Cahill.